In money terms what has been the impact of Research and Development Tax Credits for UK business?
The last figure published by HMRC indicated that in excess of £8b has been reclaimed since Research and Development Tax Credits were introduced in 2000 by all types of companies. In the latest year for which figures are available, 2011/12, the number of claims for R&D tax credits rose from the previous year by 16.5% to 12,190, representing £1.2 billion of tax relief support, based on £11.9 billion of R&D expenditure. The increase in number of claims in 2011- 12 is more than double the previous year. SME claims rose in number by 20%, large company claims by 8%, and large company subÃ¢â‚¬Âcontractor claims decreased by 5%. For the 250 companies where we have helped with justifications relating to in excess of 2000 projects, I estimate they have benefitted by in excess of £10m. With the last four claims completed, each covering two financial years, the average claim was £43,000. However, a survey in November 2008 by one of the UK’s leading accountancy practices estimated that around 50% of SMEs entitled to apply for Research and Development Tax Credits had not done so.